Buy & Hold or Sell Now?

Anyone have any thoughts?

I purchased a 1 bdr apt in Sydney in 1997 for $170k. Close to city, transport, uni, …
Only problem – it was an old apt block.

In the last few years brand new apts have been constructed very close to this unit.

Market saturation? The apt has been well maintained, while I have owned it, but unfortunately it is becoming more & more difficult to rent out. It is currently rented for $230pw. The property is just cash flow +ve.

I am considering selling the unit and using the proceeds to fund a larger property purchase($700k). I would hope to get approx $260+k for this 1bdr apt.

My reasoning behind selling is that I could sell now to prevent any further disappointment in market saturation in the area and use the funds to buy another property. I understand I could use the equity in the 1 bdr apt to fund my next purchase but not sure if I should take this apportunity to get out of this 1bdr apt …

I have very little (if any) income this current financial year. This could be considered a good time to wear the Capital Gains Tax cost … ?

Thanks in advance for any help!